Mammoth China Southern Facility Planned For New Guangzhou Airport; Massive Cargo, Catering & Office Airport Complex Unveiled

China Southern Airlines (NYSE: ZNH) (HKSE: 1055), the largest airline in The People's Republic of China is proud to announce its massive construction plans at the new Guangzhou Baiyun International Airport - which when completed may rank among the largest civil aviation projects in the world.

At the groundbreaking ceremony Mr. Yan Zhiqing, Chairman, Southern Airlines Group outlined the extensive civil aviation project which is being constructed some 30 Kilometers north from the current Baiyun International Airport - all facets including the immense China Southern complex - is slated to open in October 2003:

- The new Guangzhou Baiyun International Airport is a significant civil aviation project that has been approved by the National Development & Planning Committee to meet the demand of growth of the Pearl River Delta area;

- The new airport will immediately take its place as one of the three gateway airports (Beijing, Shanghai and Guangzhou) in China and will be the biggest air hub in Southern China and Southeast Asia.

- The China Southern Airlines (CSN) "Base Relocation Project" is a major part of the new airport project covering 1,409,340,380 square meters with the general construction area of 407,218 square meters.

- The approved cost estimation is 3,552,950,000 RMB ($429 M USD) with 70% of the estimated funds coming from loans.

Mr. Yan said that the gigantic new airport complex is under the supervision of the CAAC, Guangdong Provincial Party Committee, Guangdong Provincial Government, Guangzhou Municipal Party Committee and City Hall and the consolidate arrangement of the New Baiyun Airport Relocation Project Headquarters. He further outlined these specific China Southern Airlines relocation efforts in the new airport:

The China Southern compound will consist of five major parts … specifically the new Southern Airlines Group office building, air catering area, cargo facility, maintenance area and aerodrome service area.

The relocation project will consist of nine areas, namely: (1) CSN Parking Bay Project; (2) Guangzhou Aircraft Maintenance and Engineering Co. Ltd. (GAMECO); (3) CSN Maintenance Area; (4) Southern Airlines Group Office; (5) Cargo Station; (6) Air Catering Building (7) Power Supply; (8) Water Supply & Drainage and (9) CSN Network Information & Communication System.

Mr. Yan outlined the following new airport construction projects:

(1) CSN Parking Bay: Includes parking bay, maintenance bay, drag bay, test bay and clean bay which will cover 510,000 square meters and cargo bay of 55,000 square meters. The stay-over bay has 40 stands, which will be made up of 7 E-category stands, 32 D-category stands and 1C-category aircraft stand; maintenance bay with three E-category stands. The biggest type of stands of E-category will be for the Boeing 747-400 and Boeing 767-300 for the D category.

(2) Guangzhou Aircraft Maintenance & Engineering Co. Ltd. (GAMECO): The GAMECO air cargo station project, constructed jointly by CSN and the airport, will be the largest civil aviation project ever in China.

The new GAMECO maintenance hangar will be the largest aircraft hangar in China and will hold four large wide-bodied jets - simultaneously.

GAMECO is a joint venture established by China Southern Airlines, US based Lockheed Martin Aeronautics International and Hong Kong-based Hutchison Whampoa (China) Ltd.

The total investment will exceed 730,000,000 RMB ($88 M USD) and the total area will be more than 145,000 square meters with the total construction area of more than 96,000 square meters. The maintenance service center will be made up of a hangar hall and auxiliary maintenance workshop that will span 96,938 square meters … with an auxiliary hangar building area of more than 59,000 square meters.

(3) CSN Maintenance Area: This project consists of: (1) Maintenance Comprehensive Office Building; (2) Vehicle Maintenance Comprehensive Area; (3) Aircraft Parts Storehouse covering 26,464 square meters and will be used for the transfer of varied kinds of aircraft parts; (4) 10,000 square meter Engine and Transfer Storeroom (for lubricating oil and grease) and (5) Fuelling Station which will, in total, span more than 51,000 square meters at an estimated cost of 306,000,000 RMB ($37 M USD).

The 10 story, 27,000 square meter Maintenance Comprehensive Office Building will function as an administrative office, meeting facility, catering service, computer center and maintenance area network center.

The Vehicle Maintenance Comprehensive Area will span 5,496 square meters with a 4,536 square meter rooftop parking area.

(4) Southern Airlines Group Office: The new Southern Airlines Group Office will be located within the heart of the new CSN office complex at a projected cost of 365,000,000 RMB ($44 M USD). This new compound will provide offices for the varied departments of China Southern Airlines and other turn-around units, day/service rooms for overnight flight crews and other on-duty staffs and parking facility for all employee vehicles. The Southern Airlines Group Office Building will have a construction area of more than 30,000 square meters; hangar construction area of 31,398 square meters and with parking facilities for more than 120 large vehicles and 660 small vehicles.

(5) Cargo Station: This construction project is a joint venture between CSN and the airport authority. The cost estimate of this project is 427,000,000 RMB ($51 M USD) with a total construction area of more than 104,000 square meters.

Compared with other domestic aviation projects in China, this project will be the largest in the nation and its design capability will set the standard for large international air cargo stations.

With its throughput of 800,000 tons and a completely automated functions, the cargo station can handle varied kinds of air cargo on the ground, transfer the cargo by sea, road or air and provide nearly every type of air cargo transportation ground service for domestic (China) or international cargo owners and agents.

(6) Air Catering Building: The total area for this new facility will be more than 72,000 square meters and the total construction area will be 41,378 square meters. The estimated cost of this project is 340,000,000 RMB ($41 M USD). The new Guangzhou Baiyun International Airport Catering Facility will be used to provide air catering for all China Southern Airlines flights all domestic airlines using the new airport as well as host of International airlines. The facility will be able to generate 30,000 meals and can offer the finest in Cantonese Cuisine and a host of ethnic, children and dietary meals.

(7) Power Supply: With the massive consumption of electric power driving the CSN complex, this project has been divided into two parts to deliver electric power to the northern and southern areas of the CSN compound.

In the Southern Area: The catering facility will receive power directly from the airport central transformer substation; one on-off station will be built in the comprehensive office building and the power comes from 110KV/10KV central transformer substation of the airport.

In the Northern Area: CSN is building its own 110KV-transformer substation and will provide power to the bulk of the airport terminal.

This project is estimated at 76,000,000 RMB ($9 M USD).

(8) Water Supply & Drainage: This includes the supply and distributing water station in the Northern Area, sewage farm and the drainage pipe network. The total construction area is 1,175 square meters; the maximum available (hourly) water supply will be 1,117 Tons.

(9) CSN Network Information & Communication System: This consists of outdoor optic fiber/cable communication project (including communication piping); ground to air communication systems; network information systems; computer production application information systems; terminal security monitoring system (partly used by CSN in the aerodrome); airfield conduct and control center; comprehensive computer network and engine room technical design.

The largest airline in The People's Republic of China for the past 21 years, China Southern Airlines connects more than 80 cities around the globe. Major business and vacation destinations served in China include: Beijing, Chengdu, Guangzhou, Guilin, Hong Kong, Kunming, Shanghai, Shenzhen and Wuhan and as well as international service, including: Amsterdam, Bangkok, Fukuoka, Hanoi, Ho Chi Minh City, Kuala Lumpur, Jakarta, Los Angeles, Manila, Melbourne, Osaka, Penang, Phnom Penh, Seoul, Singapore and Sydney.